Governor Jasmina Selimović of the Central Bank of Bosnia and Herzegovina participated in a closed Washington meeting of finance ministers and central bank governors from 19 Central, Eastern and Southeastern European countries convened around the IMF’s latest European economic forecasts, and was one of three country representatives invited to comment on the report. Drawing on the central bank’s preliminary projections, she said Bosnia and Herzegovina is expected to see higher inflation and a slowdown in economic activity in 2026, with a gradual improvement in 2027 if external shocks weaken. The discussion focused on macroeconomic responses to energy price disruptions, fiscal measure design, protection of vulnerable groups, and strengthening resilience to future shocks. Selimović highlighted vulnerabilities of small and open economies, including a decline in price competitiveness, real wage growth exceeding productivity growth, and changes in global trade flows, and pointed to the need for structural reforms, lower operating costs and removal of remaining obstacles to competitiveness and long-term resilience. On monetary policy, she said central banks need to remain strongly committed to preserving economic stability, while noting that policy effectiveness will face additional pressure from the complex nature of inflation shocks, a productivity slowdown and heightened global uncertainty.